Question

The closing entry for transfer of Salaries Paid A/c appearing in the Trial Balance will be _________________.

• A. debit Salaries A/c, Credit P&L A/c
• B. debit Salaries A/c, Credit Trading A/c
• C. debit Trading A/c, Credit Salaries A/c
• D. debit P&L A/c, Credit Salaries A/c

Answer 1

Answer: (D)

debit P&L A/c, Credit Salaries A/c

Before finalization of account, closing entries are required to be passed in the books of account by transferring all the nominal accounts i.e. account of expenses and incomes to the respective a/c. At the end of the financial year, all nominal accounts will not be carried over to the next financial year.

Following closing entry will be passed for transfer of salaries:

Profit & Loss A/c Dr.

To Salaries A/c